“Resources, to produce results, must be allocated to opportunities rather than to problems.” – Peter Drucker
Once you have completed the business strategy exercise, there will be a number of outcomes in addition to the Business Strategy itself. This information is required to make the business strategy actionable and to be inputs to business unit planning, departmental plans, individual goal setting, resource allocation, budgeting, project prioritization and other activities throughout the organization.
The following outcomes are required as input in to the organization’s Technology Strategy and other company activities.
- Strategic Initiatives. These are 3-5 company initiatives that will help accomplish the company goals. The organization must align behind these initiatives and help them to be successful. Executive ownership and sponsorship should be assigned to each strategic initiative and cross-functional team assignments made to ensure the success of these efforts.
- Strategic Business Processes. These are the strategic business processes which will support the company goals and strategic initiatives. It is likely that the activities that have to occur to accomplish the company goals will require modifications to these key business processes. These processes must be identified, documented, owners established and potentially cross-functional teams assigned to support the modification of these processes to support the business goals.
- Strategic Business Applications. Supporting key business processes is inevitably a set of technologies that help run the business. It is likely as you implement new business processes, these applications must be enhanced, modified, or integrated in new ways to support the new business processes. These applications must be identified during this process to help the business prioritize required IT activities.
Heinz is an excellent example of converting goals to strategies. I have included their materials below and they can be found here.
In Fiscal Years 2008 and 2009, Heinz executed our long-term strategy to drive growth and the Company’s financial performance. Our financial strategy is focused on these goals:
- Deliver growth in organic sales (volume plus price), EPS and operating income
- Maintain a strong balance sheet with robust operating free cash flow (cash from operations less
capital expenditures net of proceeds from disposals of PP&E)
- Reduce costs and increase productivity to drive margins
- Invest in Heinz’s leading brands and core categories to drive growth
- Return a high percentage of EPS to shareholders through top-tier dividend
- Generate strong return on invested capital
- Enhance Total Shareholder Return
We will frame up your organization’s Technology Strategy in the next BLOG posting.